The slowdown in India’s automobile market is due to the “mindset of millennials” who now prefer to travel by app-based cab services, Union Finance Minister Nirmala Sitharaman said Tuesday.
“Automobile industry is now affected by BS6 and the mindset of millennials, who now prefer to have Ola or Uber rather than committing to buying an automobile,” Sitharaman was quoted as saying by news agency ANI.
Automobile sales witnessed its worst-ever drop in August across categories, with passenger car sales falling by as much as 41.09 per cent, according to data released by industry body SIAM.
While briefing reporters on ‘100 days of Bold initiatives and decisive actions taken by the Government’, the Finance Minister attributed this sharp drop in sales to the rollout of the BS-VI emission norms and the “mindset of the millenials”.
Vehicle sales across categories, including passenger vehicles (PVs) and two-wheelers and commercial vehicles (CVs) stood at 18,21,490 units last month, as against 23,82,436 units in August 2018, a fall of 23.55 per cent.
Last year, the Supreme Court had ruled that no Bharat Stage (BS) IV vehicle shall be sold across the country with effect from April 1, 2020. The BS emission standards are standards instituted by the government to regulate the output of air pollutants from motor vehicles from internal combustion engine equipment, including motor vehicles.
With sales of automobile products across segments in the slow lane for the past straight 10 months now, almost all manufacturers of passenger vehicles and two-wheelers have been resorting to production cuts in the past 6-7 months to clear unsold inventory.
The Centre is now expected to take the proposal of reduction in tax rates on cars to the GST Council, which is meeting in Goa later this month.